Reeves Leaves Door Open To Gambling Tax Rise In Autumn Budget
Rachel Reeves left the door available to an increase in gaming taxes after Gordon Brown urged her to raise levies to cover the cost of lifting the two-child advantage cap.
The Chancellor stated she was "deeply worried" about child poverty as she faced questions about the previous prime minister's proposition to increase duties for online casinos and slot machines to fund well-being reform.
Asked whether she was considering Mr Brown's tip, Ms Reeves said she had spoken to him last week and would set out Government policy in the autumn budget plan.
Gordon Brown stated betting taxes need to be raised to money welfare reform (Dominic Lipinski/PA)
"So I talk to Gordon frequently, and saw him recently when I was in Scotland," she stated.
"Like Gordon, I am deeply worried around the levels of kid poverty in Britain. No child should mature hungry or moms and dads not be able to afford the fundamentals for their household.
"We're a Labour Government. Obviously, we care about kid poverty. That's why one of the first things we did as a government was to establish a kid hardship job force that will be reporting in the fall and (will) react to it then."
She included: "On gaming taxes, we have actually already launched an evaluation into gambling taxes. We're taking evidence on that at the minute, and once again, we'll set out our policies in the normal method, in our budget later on this year."
Reforms to gambling levies could create the ₤ 3.2 billion required to scrap the two-child limit and benefit cap, the Institute for Public Law Research (IPPR) said.
The think tank's most current research stated axing the policies could lift half a million kids out of hardship and "reverse years of rising difficulty for low-income families".
Giving his backing to the report, Mr Brown, an image of whom Ms Reeves apparently kept in her bed room as a student, said it would be the "very first vital step in the war we must wage versus kid poverty".
The Government is expected to release a kid hardship method in the autumn, and project groups have stated it must consist of a dedication to desert the two-child limit.
Thanks to IPPR's report, we now know that taxing gambling more relatively would fully fund the very first important action in the war we should wage against child poverty - ending the two-child limit and raising the advantage cap
Gordon Brown
Economists have actually warned tax rises in the autumn are likely required to plug a hole in the public finances left by bad economic figures and U-turns on well-being, triggering speculation about which locations Ms Reeves might target.
The IPPR suggested increasing taxes on online gambling establishments from 21% to 50% and raising those on slots and gaming machines, from 20% to 50%.
Mr Brown included: "Thanks to IPPR's report, we now understand that taxing betting more relatively would fully money the first vital step in the war we should wage versus child hardship - ending the two-child limitation and raising the benefit cap."
Labour Mayor for the Liverpool City Region Steve Rotheram heaped additional pressure on the Chancellor later on Thursday, stating that raising 500,000 kids out of hardship must be "a national mission".
"Gordon is spot on," he stated. "The Government has a genuine opportunity to act now and young lives across the nation."
Gordon is spot on - raising 500,000 kids out of poverty must be a nationwide objective.
The federal government has a genuine chance to act now and change young lives throughout the country.
Let's get this done. https://t.co/JQY3K0jFxp
- Steve Rotheram (@MetroMayorSteve) August 7, 2025
But a representative for the Betting and Gaming Council rejected the "economically careless, factually misguiding" proposals which "danger driving big numbers to the growing, unsafe, uncontrolled gaming black market, which does not protect consumers and contributes absolutely no tax".
They included: "Further tax increases, fresh off the back of Government reforms which cost the sector over a billion in lost revenue, would do more harm than excellent, for punters, tasks, growth and public finances."